The Board of Directors of Vodafone Idea Ltd (VIL) will meet on Friday to discuss and evaluate proposals for raising funds in one or more tranches through public issue, issue of equity shares or securities among other options.
The announcement came after the Supreme Court's September 1, verdict on the Adjusted Gross Revenue (AGR) issue, wherein the top court gave a 10-year timeline to the telcos to repay their dues, with an upfront payment of 10 per cent by March 31, 2021.
In a fresh twist to the controversy over premium telecom plans, Vodafone Idea on Monday moved the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), seeking a stay on the regulator’s diktat to block such schemes. The Telecom Regulatory Authority of India (Trai) had in a written communication on July 11 asked Bharti Airtel and Vodafone Idea to hold their tariff plans prioritizing premium customers. The TDSAT is expected to hear the Vodafone Idea case on Tuesday.
Shares of telecom companies declined as much as 40 per cent on Wednesday after the Supreme Court said that the self-assessment of adjusted gross revenue (AGR) dues by the firms or the Department of Telecommunication (DoT) may amount to contempt of court.
Among individual stocks, Vodafone Idea tumbled 40 per cent to Rs 2.91 per share. At 11:35 am, the stock was trading 25.36 per cent lower at Rs 3.62 as compared to 2.06 per cent fall in Sensex.
Shares of telecom companies gained on Wednesday on report that it would take at least six months to evaluate the companies' self-assessment of dues linked to adjusted gross revenue (AGR).
Among individual stocks, Vodafone Idea surged as much as 23.5 per cent to Rs 4.94 on the BSE while Bharti Airtel was up 2.46 per cent to Rs 508.5. In comparison, the benchmark S&P BSE Sensex was trading 0.1 per cent higher at 10 AM.
Vodafone Idea Chairman Kumar Mangalam Birla, MD and CEO Ravinder Takkar on Tuesday called on Telecom Secretary Anshu Prakash amid concerns of its very survival if the government invokes bank guarantee over no payment of adjusted gross revenue (AGR).
The company on Monday paid Rs 2,500 crore on account of its AGR dues and said that another Rs 1,000 crore will be paid by Friday. It is said that funds are being arranged to pay the remaining amount.
Shares of Vodafone Idea continued their decline, falling 15 per cent to Rs 2.91 on the BSE on Tuesday, after Care Ratings (CARE) downgraded its ratings on the long-term bank facilities and non-convertible debentures.
The stock of the telecom services firm was trading lower for the seventh straight day, plunging 44 per cent during the period. It was trading close to its all-time low price of Rs 2.61 touched on November 15, 2019.
Shares of Vodafone Idea surged 19 per cent to Rs 4.09 on the BSE on Monday as the loss-making firm said it would pay its dues linked to adjusted gross revenue (AGR) in the next few days after assessing the amount.
The Supreme Court had on Friday dismissed the petitions of Bharti Airtel and Vodafone Idea seeking a staggered option to pay their AGR-related dues. Following the SC ruling, Vodafone Idea's stock price had plummeted 19 per cent.
Bharti Airtel on Wednesday pitched for a healthy telecom sector with three players, and said Vodafone Idea’s survival will be good from the ‘investment and reputation’ point of view for India.
In the company’s post-earnings conference call, Bharti Airtel’s Chief Financial Officer (CFO) Badal Bagri said the telecom sector was large enough to accommodate three players. “On Vodafone, I think my view is that they will remain and I wish that they thrive.
Shares of Vodafone Idea surged 16 per cent to Rs 5.70 on Tuesday, extending its Monday's 8 per cent gain on the BSE, amid hopes that the Supreme Court (SC) may extend the deadline for adjusted gross revenue (AGR) dues payment of January 24, 2020.
On Friday, the stock of telecom services provider tanked 25 per cent to level of Rs 4.51 after the SC rejected the review petition by Vodafone Idea and Bharti Airtel challenging the apex court's 24 October order on AGR.
Telecom czar Sunil Bharti Mittal-led Bharti Airtel may consolidate its position at the expense of Vodafone Idea Ltd as it has better balance sheet strength to deal with the eventuality of having to pay past statutory dues in case the Supreme Court rejects their review petitions, brokerages said.
Airtel and Vodafone Idea have filed separate petitions in the Supreme Court seeking review of the October 24 order of the apex court that held them liable to pay statutory dues for past 14 years after including non-telecom revenue in their annual adjusted gross revenues (AGR).
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